SO AS A CONSULTANT WE SUGGEST COMPANIES ONLY USE ONE BANK TO CLEAR VENDOR OPEN ITEMS

AND AT THE END OF MONTH

'EBELN', 'EBELP' 'XREF3

LAST TIME WHEN I CAME HERE OFFICER DID NOT GIVE ME BACK MY CERTIFICATE AFTER TEST. HE HAD
GIVEN ME BACK MY OTHER DOCUMENTS EXCEPT CERTIFICATE. AND TODAY I WENT TO SCHOOL TO GET
MY NEW CERTIFICATE BUT THAT WAS CLOSE. I HAVE A RECIEPT OF MY CERTIFICATE AND RESULT SHEET
OF MY LAST TEST AS WELL. IF U WANT U CAN SEE BOTH.

SO LAST TIME HOW DID U ALLOW ME FOR TEST IF I HAD NO CERTIFICATE.

I WAS BUSY WITH MY FAMILY FOR 2 DAYS. ON SATURDAY WE WERE INVITED AT OUR BROTHERS HOME
THERE WAS A EID PARTY AND YESTERDAY I WENT WITH MY FAMILY TO LAKE COMPUNCE. I WAS TOO
TIRED THAT’S WHY I DID NOT COME.

WHERE IS THE [PARTY TONIGHT?

PARTY FOR WHAT?

AAJ KHAS DIN HIE PARTY TO BANTI HIE

IT’S A SPECIAL DAY, SURELY CALLS FOR A PARTY

WHO’S SPECIAL DAY IS IT?

IS IT NOT YOUR SPECIAL DAY

THEEK HIE PARTY KE LIE KAUN SE SPECIAL DAY KI ZAROORAT HOTI HE

OK FINE, ANYWAY THERE IS NO NEED FOR A SPECIAL DAY TO HAVE A PARTY. WE WILL PLAN IT SOME
OTHER TIME.

DID YOU CALL?

YES I DID, HE WILL BE HERE IN 10 MINUTES

WHO WILL BE HERE IN 10 MINUTES?

THE DILEVRY BOY WITH MY MULTI VITAMINS

MERA ICE CREAM KHANE KA DIL CHAHRAHA HE

I FEEL LIKE HAVING ICE CREAM

I FEEL LIKE HAVING ICE CREAM

I FEEL LIKE HAVING ICE CREAM

IFEEL LIKE HAVING ICE CREAM

I FEEL LIKE HAVING ICE CREAM

I FEEL LIKE HAVING ICE CREAM

He gave me 20 dollar then I put 20 dollar in the machine then took out the rest of the amount which
becomes 15 dollar and gave it to her. Now Again he gave me 2 dollar for one o one which I gave it to
her.

DEFINITION OF DEFFERED EXPENSE:

IN DEFERRED EXPENSE CASH HAS ALREADY BEEN PAID TO VENDOR BUT EXPENSE HAS NOT YET BEEN
INCURRED.

DEFFERED EXPENSE IS NOTHING BUT SOMETHING HAS ALREADY BEEN PAID FOR ACCOUNTING RECORDS
BUT AMOUNTS NEEDS TO BE DIVIDED UP BETWEEN TWO OR MORE ACCOUNTING PERIOD. DEFFERED
EXPENSE IS PREPAID SO INITIALLY WE WILL RECORD THIS EXPENSE IN BALANCE SHEET AS AN EXPENSE
ON THE ASSET SIDE AND THEN WE HAVE TO TRANSFER THIS AMOUNT GRADUALLY TO INCOME
STATEMENT.
COMPANY SCENARIO:

MY COMPANY HAS PAID 12000 DOLLARS TO INSURANCE COMPANY IN ADVANCE AND USER HAS
POSTED INVOICE IN SYSTEM. MY CLIENT REQUIREMENT IS THAT THEY WANT TO DIVIDE this AMOUNT
OF as an INSURANCE EXPENSE IN TO 12 MONTHS LIKE (1000 MONTHLY) AND it should be SHOWn IN
INCOME STATEMENT ON MONTHLY BASIS. HOW CAN I FULFILL THIS REQUIREMENT?

NOTE: WE CAN DO THIS USING THE T.CODE F-02 BUT AFTER ONE MONTH IT WILL BE HARD TO FIND THE
DOCUMENT NUMBER WHICH WE POSTED EARLIER.

SOLUTION:

WE HAVE TO FOLLOW BELOW STEPS IN ORDER TO POST THE DEFFERED EXPENSE IN SAP

1. CREATE INSURANE COMPANY AS VENDOR

2. CREATE INSURANCE EXPENSE GENEREL LEDGER MASTER DATA
3. CREATE PREPAID INSURANE GENERAL LEDGER MASTER DATA
4. CREATE NO RANGES FOR DOCUMENT TYPE X1
5. POST INVOICE IN VENDOR ACCOUNT

FIRST ENTRY:
INSURANCE EXPENSE DR
TO VENDOR

IF USER HAS ALREADY POSTED THE INVOICE IN the SYSTEM THEN WE HAVE TO PASS ANOTHER
ENTRY IN THE SYSTEM WHICH will be AS FOLLOWS:

SECOND ENTRY: WE CAN PASS THIS ENTRY FROM F-02

PREPAID INSURANE DR
INSURANCE EXP CR

IN ABOVE ENTRY WE HAVE TRANSFERRED THE IMPACT FROM INSURANCE EXPENSE TO PREPAID
INSURANCE ACCOUNT BECAUSE USER HAD ALREADY POSTED THE INVOICE. IF USER WOULD
NOT HAVE POSTED THE INVOICE THEN WE COULD HAVE PASSED BELOW ENTRY AT THE TIME OF
INVOICE POSTING:

PREPAID INSURANCE DR
VENDOR CR

IN OUR CASE USER HAS ALRADY POSTED INVOICE SO WE WILL HAVE TO PASS ONOTHER ENTRY
IN THE SYSTEM TO TRANSFER THE IMPACT FROM INSURANCE EXPENSE TO PREAPAID
INSURANCE LIKE WE DID IN SECOND ENTRY.
 NOTE: SEE SECOND ENTRY

AFTER PASSING the SECOND ENTRY WE WILL GO TO THE RECURRING DOCUMENT AND CREATE THE
TEMPLATE ON FBD1:

FIRST RUN. SUPPOSE 01.01.2019

LAST RUN: SUPPOSE 31.12.2019

INTERVALS IN MONTH: 1

RUN DATE: (MEANS ON WHICH DATE YOU WANT TO POST THIS DOCUMENT: 31

POSTING KEY 40 SELECT INSURANCE EXP ACCOUNT

AMOUNT 1000 (BECAUSE WE HAVE TO POST 1000 AS AN INSURANCE EXPENSE EVERY MOTNH
ACCORDING TO THE CLIENT REQUIREMENT.

POSTING KEY 50 AND SELECT PREPAID INSURANCE ACCOUNT AND GIVE SAME AMOUNT AND CLICK ON
SAVE.

NOTE: IN ABOVE STEP SYSTEM WILL JUST STORE THE DOCUMENT NOT POST THE DOCUMENT

AFTER THIS USE TCODE F.14 TO PASS THE ABOVE ENTRY WHICH U HAVE DEFINED IN TEMPLATE.

ON F.14 GIVE YOUR COMPANY CODE, TEMPLATE DOCUMENT NO AND SETTELMENT PERIOD AND CLICK
ON EXECUTE. SYSTEM WILL CREATE A BATCH INPUT SESSION THEN GO TO SYSTEM, SERVICES, BATCH
INPUT AND SELECT SESSIONS.

AFTER EXECUTING THE SESSION SYSTEM WILL POST THE ENTRY LIKE THIS:

INSURANCE EXPENSE DR 1000 (DOCUMENT AND POSTING DATE 31.01.2019)

PREPAID INSURANCE CR 1000 (DOCUMENT AND POSTING DATE 31.01.2019)

WE HAVE TO RUN RECURRING ENTRY PROGRAM EVERY MONTH TO POST DEFERAL EXPENSE IN OUR
FINACIAL STATEMENT.
 SECOND
6. POST DOCUMENT TO TRANSFER THE IMPACT FROM INCOME STATEMENT TO BALANCE SHEET
BY USING THE T.CODE FBS1
7. REVERSE THE DOCUMENT BY USING THE T.CODE F.81

IF WE DO NOT WANT TO POST THIS ENTRY WITH T.CODE FBS1 THEN WE HAVE TO POST THIS ENTRY LIKE
THIS:

Vendor Cr 12000

Expense Rent (G/L) Dr 1000

Prepaid Rent (G/L) Dr 11000

2nd Month:

Expense Rent (G/L) Dr 1000

Prepaid Rent (G/L) Cr 1000

3rd Month:

Expense Rent (G/L) Dr 1000

Prepaid Rent (G/L) Cr 1000

IF WE DO NOT WANT CREATE INSURANCE COMPANY AS A VENDOR THEN FOLLOWING ENTRY WILL BE
POSTED:

PREPAID INSURANCE ACCOUNT DR 12000

TO BANK /CASH ACCOUNT 12000

THEN:

INSURANCE EXP DR 1000

TO PREPAID INSURANCE 1000

EVERY MONTHY WE HAVE TO DO LIKE THAT